What Are Dividends? - Investing in Stocks

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Corporations often allocate all or part of their profits to shareholders. This is called _____.

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1. Which of the following is usually an attribute of common stock?

2. Christy is buying stock. Why might she want preferred stock over common stock?

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About This Quiz & Worksheet

Stock is one of the ways individuals can make money from profits earned by a specific corporation. When you take this quiz, you'll be testing how well you know the intricacies of profit sharing and some of the features of stock.

Quiz & Worksheet Goals

Take this quiz to test how well you understand:

  • How corporations allocate profits
  • Characteristics of common stock
  • Attributes of preferred stock
  • Bankruptcy procedures
  • Calculating stock profits

Skills Practiced

The review materials will help you practice:

  • Interpreting information - verify that you can read information regarding profit dispersal and interpret it correctly
  • Distinguishing differences - compare and contrast topics from the lesson, such as preferred and common stock
  • Making connections - use understanding of the concept of stock value

Additional Learning

If you want to learn more about the nature of stock, check out the accompanying lesson titled What Are Dividends? - Investing in Stocks. At the end of the video lesson, you should be able to:

  • Define stock
  • Understand how stock helps make money for stockholders and corporations
  • Identify the main characteristics of common stock and its advantages
  • Know how stockholders interact with the Board of Directors
  • Describe preferred stock and its pros and cons
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